10-year yield seen between 8.25-8.5%: Ramanathan K

Ramanathan K, CIO, ING Investment Mgmt said, "RBI's announcement yesterday to come out with OMO (open market operations) purchases should result in a sharp fall in yields possibly below 8.5%. Continued OMO purchases would act as a cap in long bond yields. The range for the 10-year yield is seen between 8.25-8.5 percent"

Rajeev Malik, CLSA said, "The latest moves by the RBI are aimed at cleaning up the unintended mess in the bond market from their convoluted and ineffective currency defence. But they still appear unsure of what they want to eventually save.

"There is likely to be a relief rally across local markets in India but the underlying complex of headwinds doesn't change. Specifically, the policy of high short-term rates will still be in place and the yield curve will remain inverted," he added.